🚨Shen Yu explains the 'Four Wallet' investment management rules and investment mindset management——
Content:
From @WutalkWu @wublockchain12
The Four Wallet Rule allocates assets to avoid emotional decision-making;
In investing in core assets (such as Bitcoin and Ethereum), adopt a strategy of gradual buying and cold wallet locking to ensure long-term holding.
Experimental assets (such as NFTs, MEMEs, and popular tracks) are used with a small observation position strategy to explore market potential.
The first is the cold wallet, mainly used to accumulate core assets and set various operational barriers to make it difficult to easily access. When you are in a FOMO state and want to sell off most of your assets, you will find that it requires a series of operations to achieve, and this period may help you calm down. Typically, this wallet accounts for over 60% of total assets.
The second is the warm wallet, mainly used to manage assets and provide stable cash flow support to maintain a stable mindset, especially in extremely pessimistic market conditions. This portion of assets accounts for about 20% to 30%.
The third is the hot wallet, mainly used for consumption and speculation, such as trying new products and buying NFTs, which are high-risk operations. The proportion of this asset is very small, accounting for only a small amount of funds. One characteristic of the hot wallet is that if its assets grow significantly, the profit portion should be promptly transferred to the cold wallet or warm wallet to avoid long-term risks.
Finally, the fiat wallet, I adopt a 'withdraw only, no recharge' strategy. The fiat wallet is mainly used for living expenses, and I follow a '4% principle', whereby the assets in the fiat wallet and their generated interest can cover my annual expenses. Even if other wallets incur losses, the fiat wallet can still ensure my daily living expenses, helping me maintain a state of financial independence.
Shen Yu—Everyone is irrational. We need to be honest about our emotions and behaviors. Although many mistakes seem absurd in hindsight, if the situation were to repeat itself, it is likely that similar choices would be made.
Mistakes are essentially feedback from the world, and those painful mistakes are often key to growth. When we gain real and effective information from mistakes, it is important not to fall into emotions but to improve ourselves through reflection.
I have witnessed many people rise from nothing to repeated ups and downs, and I have also found that those who can survive long-term in the crypto space, regardless of their background, share a common trait: they maintain an open mindset and a growth-oriented thinking.
In summary, these experiences made me realize that I am not good at trading, but by observing, learning, and reflecting, I gradually built a position management system suitable for myself. This system helps me better manage emotions and assets in an uncertain environment, achieving long-term investment goals.
Original source: https://mp.weixin.qq.com/s/JlmrHbjh7IoHGfg4D1sVqA
